Executive Compensation and Labor Expenses
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Stefano Colonnello
Abstract
Using data on US public firms, I uncover a strong and positive correlation between executive compensation and labor expenses. On average, a 1 % increase in the wage bill translates into a 0.3 % raise in total executive pay. This association is driven by wages rather than by employment growth, is stronger for the incentive than for the salary component of executive compensation, and is particularly pronounced in the financial sector.
Acknowledgements
I am grateful to Roberto Marfè, Konstantin Wagner, and Shuo Xia for insightful comments.
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Supplementary Material
The online version of this article offers supplementary material (DOI:https://doi.org/10.1515/bejeap-2019-0258).
© 2019 Walter de Gruyter GmbH, Berlin/Boston
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- Research-articles
- Minimum Wages and Nascent Entrepreneurship in the US
- Social Status Perception and Individual Social Capital: Evidence from the US
- Endogenous Equity Shares in Cournot Competition: Welfare Analysis and Policy
- Personal or Partisan Incumbency Advantage? Evidence from an Electoral Reform at the Local Level in Italy
- Knowledge Obsolescence and Women’s Occupational Sorting: New Evidence from Citation Data
- The Effect of the Second Child on the Anthropometric Outcomes and Nutrition Intake of the First Child: Evidence from the Relaxation of the One-Child Policy in Rural China
- The Challenge of Organizing Elderly Care Programmes: Optimal Policy Design under Complete and Asymmetric Information
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- Assessing Higher Education Policy in Brazil: A Mixed Oligopoly Approach
- Inheritance Taxation in a Model with Intergenerational Time Transfers
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- A Note on Productive and Dynamic Inefficiencies of Intermediate Regulatory Sanctions
